Quail Company is considering buying a food truck that will yield net cash inflows of $13,600 per year for seven years. The truck costs $46,000 and has an estimated $6,300 salvage value at the end of the seventh year (PV of $1. EV of $1. PVA of S1, and EVA of $1) Note: Use appropriate factor(s) from the tables provided. Enter negative net present values, if any, as negative values. Round your present value factor to 4 decimals. What is the net present value of this investment assuming a required 10% return? Years 1-7 Totals Net present value Net Cash Flows x PV Factor Present Value of Net Cash Flows

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Quail Company is considering buying a food truck that will yield net cash inflows of $13,600 per year for seven years. The truck costs
$46,000 and has an estimated $6,300 salvage value at the end of the seventh year. (PV of $1. EV of $1, PVA of $1. and EVA of $1)
Note: Use appropriate factor(s) from the tables provided. Enter negative net present values, if any, as negative values. Round your
present value factor to 4 decimals.
What is the net present value of this investment assuming a required 10% return?
Net Cash Flows
Yours 17
Totals
Net present value
PV Factor
Present Value of
Net Cash Flows
Transcribed Image Text:*) Quail Company is considering buying a food truck that will yield net cash inflows of $13,600 per year for seven years. The truck costs $46,000 and has an estimated $6,300 salvage value at the end of the seventh year. (PV of $1. EV of $1, PVA of $1. and EVA of $1) Note: Use appropriate factor(s) from the tables provided. Enter negative net present values, if any, as negative values. Round your present value factor to 4 decimals. What is the net present value of this investment assuming a required 10% return? Net Cash Flows Yours 17 Totals Net present value PV Factor Present Value of Net Cash Flows
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